SK Hynix Seeks US Licence for More Dalian Fab Equipment, Tying It to a US Plant, Sources Tell Reuters
SK Hynix is seeking Washington's approval to export more US chipmaking equipment to its Dalian, China NAND facility as a condition for building a US factory, two people told Reuters. SK hynix said the Mod B installation has US approval and that it is not pursuing a capacity expansion.
US export controls on Chinese fabs may now be part of the bargain over US factories, if Reuters' sources are right. South Korea's SK Hynix is seeking approval from Washington to export US chipmaking equipment to China to increase production there, as a condition for building a factory in the US, two people familiar with the matter told Reuters on Wednesday, October 14.
What the sources describe
The request concerns SK Hynix's Dalian NAND facility, which uses tools from Lam Research, Applied Materials and KLA, Reuters reports. Its US unit Solidigm has applied for an export licence to buy additional tools for Mod B, a fab space built in 2023 whose equipment buildout was not completed because of the memory downturn, one person said. Expanded production in China would help Solidigm fund a US NAND facility, one source said, and Solidigm is also weighing an IPO as early as next year, according to another.
The Commerce Department issued a 2026 licence for the Dalian site in December that limited the quantity of equipment, and has not yet issued one for 2027, Reuters reports. NAND pricing has risen sevenfold since mid-2023, TechInsights' Walt Coon told Reuters.
The company's response
SK Hynix did not immediately respond to Reuters, and Solidigm declined to comment, according to the initial report. SK hynix later told Reuters: "The installation of equipment for Mod B is being carried out in close consultation with, and with approval from, the U.S. government. We are not pursuing a production capacity expansion," Chosun Biz reported.
The report came as SK hynix shares fell sharply in Seoul's AI-chip selloff.
Limits
- The core report rests on unnamed sources in a single Reuters story; the company disputes that it seeks a capacity expansion.
- No licence decision or US plant commitment has been announced. The original Reuters page was read through The Economic Times' syndication.